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Whilst we are still awaiting a formal and detailed written update on the Coronavirus Job Retention Scheme, Chancellor Rishi Sunak has now announced the following:

  • The last day that employers can place employees on furlough leave will be 10 June 2020.
  • ‘Flexible furlough’ is being introduced from 1st July 2020, under which employees will be able to work part-time and be furloughed part-time.
  • Employers will have to pay employees’ national insurance contributions and pension contributions from 1 August 2020 and will not be able to reclaim these payments.
  • From 1st September 2020 the Government will only reimburse 70% of salary (up to a maximum of £2,190). Employers will be required to top-up salary to 80% (or more, depending on what the employer agrees with the employee).
  • From 1st October 2020 the Government will only reimburse 60% of salary (up to a maximum of £1,875), and employers will continue having to top up to 80% (or more, depending on what the employer agrees with the employee).
  • The Furlough scheme will close completely on 31st October 2020.

For more details on how to manage the Furlough scheme within your business please contact Elizabeth Judson on 0151 556 1125

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